Consider a Product with Three Components in Series,with Reliabilities of 0.90,0.80,and

question 6

Multiple Choice

Consider a product with three components in series,with reliabilities of 0.90,0.80,and 0.99 for components A,B,and C,respectively.Furthermore,component B uses a backup that also has a reliability of 0.80.What is the reliability of the system?

• A)0.50000
• B)0.71280
• C)0.80000
• D)0.85536
• E)3.49000

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Definitions:

Nominal Interest Rate

The stated interest rate of a loan or investment without adjusting for inflation.

Real Rate

The interest rate that has been adjusted for inflation, reflecting the true cost of borrowing or the true yield on an investment.

Prices Fall

A situation in the market where the cost of goods or services decreases due to various factors such as supply and demand.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.